The frenzy over Chinese artificial intelligence is turning Alibaba Group Holding Ltd. into an investor favorite again, injecting new life into an e-commerce giant that had nearly sunk into obscurity following a years-long regulatory crackdown.

CEO Tim Cook attributed the recent 11% drop in iPhone sales in China to the lack of Apple Intelligence, while local competitors like Huawei moved quickly to fill the gap. In its search for a local AI partner, Apple considered startups such as DeepSeek and ByteDance but ultimately chose Alibaba.

Asian markets, except for Hong Kong and Mainland China, were lower on Trump’s steel and aluminum tariff talk as the U.S. dollar strengthened overnight.